Nvidia has become the world’s first firm to achieve a $5 trillion market valuation fueled by the explosive rise of artificial intelligence (AI) and the robust recovery in the US stock market.
The Silicon Valley semiconductor company reached the milestone just three months after breaching the $4 trillion threshold, highlighting its leadership of the global tech sector.
Nvidia’s market cap now bigger than major economies
The company’s new valuation , $5.05 trillion, is higher than the gross domestic product (GDP) of several major countries, including Japan, and the United Kingdom, according to data from the International Monetary Fund (IMF). Nvidia’s rise has outpaced its rivals in the chip sector, driven by the world’s growing dependence on its powerful processors that fuel most modern AI technologies.
When trading opened on Wednesday (29th October), Nvidia’s shares touched $207.86, with over 24.3 billion shares outstanding, officially pushing its market value past the $5 trillion mark. The soaring demand for Nvidia’s chips, considered the best in the world for training and running AI software, has been the key reason behind its rapid rise since early 2023.
The broader US stock market has also been on a record-setting spree this week, boosted by massive investments flowing into AI technologies.
New deals and partnerships fueling growth
Nvidia’s growth got another boost this week after CEO Jensen Huang revealed that the company had received $500 billion worth of chip orders. The company also announced several major deals, including a partnership with Uber to develop robotaxis and a $1 billion investment in Nokia to jointly work on next-generation 6G technology.
Additionally, Nvidia has teamed up with the US Department of Energy to build seven new AI supercomputers, which will further strengthen the country’s technological infrastructure.
The company’s chips also play a crucial role in the plans of OpenAI, the creator of ChatGPT, which relies heavily on Nvidia’s hardware to power its artificial intelligence systems. Just last month, Nvidia confirmed that it would invest $100 billion in OpenAI as part of a major partnership that will add at least 10 gigawatts of new AI data centers to boost computing capacity.
Trump’s backing and rising influence
Nvidia’s success has also caught the attention of world leaders. During his visit to South Korea on Wednesday (29th October), US President Donald Trump praised Jensen Huang, calling him an “incredible guy.” Trump described Nvidia as one of America’s greatest success stories and hinted that his administration might allow a slightly less powerful version of Nvidia’s advanced Blackwell chip to be sold to China — a move that analysts believe could further drive up the company’s share price.
Trump also revealed in a financial disclosure that he personally owns up to $1.3 million worth of Nvidia shares, highlighting his confidence in the company’s future.
Concerns over an AI-driven market bubble
While Nvidia’s success story has inspired excitement across global markets, some economists have warned of a potential “AI bubble.” Officials at the Bank of England and the International Monetary Fund have raised concerns that stock prices inflated by AI enthusiasm could eventually crash if growth expectations don’t match reality.
Experts point to the circular nature of some deals, such as Nvidia’s $100 billion investment in OpenAI, as a potential red flag. Since OpenAI’s expansion depends heavily on buying Nvidia’s own chips, some analysts fear that the industry may be creating a self-reinforcing cycle of investment without clear revenue returns.
